During an IVA, you usually need your supervisor’s agreement, and the remortgage is often about releasing equity for creditors under the terms of the arrangement. After completion, the IVA stays on your credit file for 6 years from its start date, and options tend to widen as time passes. In neither case is anything guaranteed.
This page explains the equity release clause found in many IVAs, what changes once you have your completion certificate, and the position for protected trust deeds in Scotland. If you are finding IVA payments hard, speak to your supervisor, or get free advice from MoneyHelper, StepChange or National Debtline.
On this page
In short
- An IVA stays on your credit file for 6 years from its start date, even if it finishes sooner.
- Remortgaging during an IVA usually needs your supervisor’s agreement.
- Many IVAs include a clause asking you to try to release equity, often near the end.
- Keep your completion certificate, as lenders and advisers may ask to see it.
What is the difference between remortgaging during and after an IVA?
The main differences are who needs to agree and where the money goes. During an IVA the arrangement is still binding, so your supervisor usually has to agree to any remortgage, and equity released is often paid into the IVA for your creditors. After completion you can apply like anyone else, but lenders will still see the IVA until 6 years after it started.
| Point to consider | During an IVA | After completion |
|---|---|---|
| Who needs to agree | Usually your IVA supervisor, as well as the lender | The lender only |
| Common reason to remortgage | Releasing equity for creditors under an equity clause | A new deal, or avoiding the standard variable rate |
| Credit file | Shows the IVA as active | Shows the IVA as completed until 6 years from the start date |
| Insolvency Register | Listed | Removed 3 months after the IVA ends |
| Key document | Your IVA terms and your supervisor’s written agreement | Your completion certificate |
A general guide for IVAs in England, Wales and Northern Ireland. Check your own IVA terms or ask your IVA supervisor how they apply to you.
What is an equity release clause in an IVA?
If you own your home, many IVAs include a clause requiring you to try to release equity from it, commonly towards the end of the arrangement and often in the final 6 months. The money raised, usually through a remortgage, is paid into the IVA. The wording varies, so check your own IVA terms or ask your IVA supervisor.
If a remortgage is not possible, for example because no lender will offer one or the payments would not be affordable, many IVAs are extended instead, often by up to 12 months. Your supervisor may want evidence that you tried, such as a decline or an adviser’s assessment.
If your IVA has an equity clause, get an up-to-date idea of your property’s value and your mortgage balance well before the review. It gives you and an adviser more time to look at every option, including whether a remortgage is realistic at all.
Can you get a new mortgage deal during an IVA for other reasons?
Sometimes people need a new deal during an IVA because a fixed rate is ending. A product transfer with your current lender can be the simplest route: it raises no new money and, where you are not borrowing more, lenders can switch existing customers without a full affordability assessment. Even so, tell your supervisor, as your IVA terms may require it.
Borrowing more during an IVA is a different matter. IVAs commonly restrict new credit without the supervisor’s agreement, and extra equity may be claimed for creditors. Speak to your supervisor before applying for anything.
What changes once your IVA is complete?
When the arrangement ends successfully, your supervisor issues a completion certificate. Keep it safe, as it is the clearest evidence the IVA was finished. Your entry is removed from the Insolvency Register 3 months after the IVA ends, which you can check on GOV.UK.
The IVA stays on your credit file until 6 years after its start date, not its end date. A 5-year IVA therefore drops off about a year after it completes, while one extended to 6 years may drop off around the time it finishes.
| Event | Example date |
|---|---|
| IVA agreed by creditors (the start date) | March 2021 |
| Equity review, if the IVA includes one | Late 2025 |
| IVA completes and the certificate is issued | March 2026 |
| Removed from the Insolvency Register | June 2026 |
| Removed from the credit file | March 2027 |
Dates are for illustration only, based on an IVA that completes on time. The 6-year credit file period runs from the start date.
Accounts included in the IVA may also show as defaulted, usually with dates around when the IVA began. Those follow the same rules as any other default, explained on our defaults page.
What do lenders look at after an IVA?
Time since completion is usually the main factor, alongside how you have managed credit since. A clean record on your mortgage and any new accounts, being on the electoral register and a steady income all help. Lenders do not see the score in a credit app, as our low credit score page explains.
Equity matters a great deal. Some people come out of an IVA with less equity than before, because some was released for creditors. Our guide on how LTV affects a bad credit remortgage explains why a lower LTV generally widens options.
What if you have a protected trust deed or another arrangement?
In Scotland, the nearest equivalent to an IVA is a protected trust deed. It works differently, including how your home is treated and what your trustee can require, so check the terms of your own trust deed with your trustee rather than relying on IVA rules.
If an IVA failed and led to bankruptcy, see our page on remortgaging after bankruptcy. If you used an informal plan instead, see remortgaging with a debt management plan.
What may affect your remortgage options
After an IVA, lenders tend to look at the dates first and then at everything that has happened since.
| Factor | Why it matters |
|---|---|
| Age of the IVA | The start date sets when the IVA leaves your credit file, and the completion date shows how long you have been clear. Options tend to widen as time since completion grows. |
| Amount of debt included | The total debt may be considered, but lenders usually focus more on the IVA itself and how things have gone since. |
| Completed, active or failed | An active IVA needs your supervisor’s agreement. A completed IVA with a certificate is usually viewed more favourably than one that failed. |
| Other credit issues | Defaults and missed payments from before the IVA often show too. New credit problems since the IVA began are likely to count heavily. |
| Mortgage payment history | Keeping your mortgage up to date throughout the IVA is strong evidence in your favour, as the mortgage usually sits outside the arrangement. |
| Property value | A current valuation sets the equity available, which matters both for an equity clause and for a later remortgage. |
| Outstanding mortgage balance | If equity was released during the IVA, your balance will be higher, which affects the LTV of any new deal. |
| LTV and equity | A lower LTV generally gives more options after an IVA. During one, the equity available also decides whether a release is realistic. |
| Income and affordability | Lenders stress test the new payment against your income and outgoings. Once the IVA ends, the monthly contribution stops, which may help. |
| Employment type | Self-employed applicants may need accounts or tax calculations covering the IVA years. See self-employed bad credit remortgages. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- The start date of your IVA and, if finished, the completion date
- Your completion certificate, or your supervisor’s details if the IVA is active
- The equity release clause from your IVA terms, if there is one
- Any letter from your supervisor about an equity review or consent to remortgage
- Whether the IVA has been varied or extended
- Your mortgage balance, monthly payment and deal end date
- An estimate of your property’s value
- Proof of income and your regular outgoings
Specific IVA situations
More detail for particular circumstances.
Remortgaging after an IVA over 6 years ago
What normally happens to an IVA once it is more than 6 years old, whether you still have to declare it, and what to check if it is still showing on your file.
Remortgaging after your IVA has completed
How long after an IVA completes lenders tend to consider a remortgage, how the way it ended matters, and how to check your credit file shows it correctly.
Remortgaging while your IVA is still running
Remortgaging part way through an IVA: asking your supervisor for consent, how the stage of the IVA matters and what lenders that consider an active IVA may ask for.
Remortgaging after a failed IVA
What happens when an IVA fails, how it differs from a completed IVA on your credit file, whether you can still remortgage and what options are worth exploring.
An IVA with a joint mortgage
How a joint mortgage is assessed when one of you has an IVA, what your supervisor’s agreement usually covers, and the option of a sole-name remortgage instead.
Renewing your mortgage deal during an IVA
What happens when a fixed deal ends during an IVA, how a product transfer compares with a new-lender remortgage, and why to start the renewal early.
Remortgaging to pay off an IVA
How remortgaging to release equity for an IVA works, from equity clauses and supervisor consent to lump sum settlements, completion certificates and the risks.
Frequently asked questions
Do I have to remortgage because of my IVA?
Not necessarily. Many IVAs for homeowners include a clause requiring you to try to release equity, but that means making a genuine attempt, not borrowing at any cost. If a remortgage is not possible or affordable, many IVAs are extended instead, often by up to 12 months. Check your own IVA terms or ask your IVA supervisor what yours says.
Will my IVA supervisor agree to a remortgage?
It depends on your IVA terms and what the remortgage is for. A remortgage to meet an equity clause is part of the arrangement, so your supervisor will usually be involved from the start. One for other reasons, especially if it raises extra money, may need a stronger case. Ask your supervisor early and get any agreement in writing.
Will lenders still see my IVA once it is off the Insolvency Register?
Yes, if it is within 6 years of the start date. Removal from the Insolvency Register, 3 months after the IVA ends, is separate from your credit file. The IVA stays on your file, marked as completed, until 6 years after it began. After that it drops off, though some application forms ask if you have ever had an IVA, and you should answer honestly.
Can I remortgage to settle my IVA early?
Some people use equity to offer a lump sum that ends an IVA early. This usually means your supervisor putting the offer to creditors, who decide whether to accept it, so it is not automatic. Even if it is accepted, the IVA stays on your credit file until 6 years after its start date. Ask your supervisor how it would work under your own IVA terms.
Is my mortgage included in my IVA?
Usually not. An IVA normally covers unsecured debts such as credit cards and loans, and mortgage payments carry on alongside it. Keeping your mortgage up to date during the IVA matters, both to protect your home and because your mortgage record is one of the first things a lender checks when you remortgage.